HB 6112 Summary

• Amends the Insurance Code to add definitions and requirements for annuity sales and recommendations, including "cash compensation," "consumer profile information," "material conflict of interest," "noncash compensation," and "nonguaranteed elements."

• Replaces "suitability information" with "consumer profile information" that producers must obtain, which includes age, income, financial situation, experience, insurance needs, objectives, intended use, time horizon, existing assets, liquidity needs, liquid net worth, risk tolerance, and tax status.

• Applies to any sale or recommendation of an annuity by a producer, with exemptions for direct response solicitations, employee benefit plans, qualified retirement plans, governmental plans, and personal injury settlements.

• Clarifies that producers need only maintain their producer license (not additional securities licenses) to comply with the chapter, provided they do not give advice or services otherwise subject to securities laws or require other professional licenses.

• Creates no private cause of action for violations and does not subject producers to civil liability as a fiduciary; takes effect 6 months after enactment and is contingent on passage of HB 6113, HB 6114, and HB 6115.